Banks to hold deliberations with Kingfisher on Tuesday

New Delhi: For cash-strapped Kingfisher Airlines, immediate relief may not be in sight as a leading bank said any further debt restructuring will be linked to promoters ability to bring in substantial equity, even as the bankers to the crisis-hit airline are likely to meet early next week to take stock of the situation.
“On Tuesday, SBI and other lenders are meeting with the Kingfisher Airlines management in Mumbai. Bankers want more information on their fleet, equity, continuation of fuel supply... Banks can come in as lenders not promoter. We will respond how it unfolds,” said Pratip Chaudhuri, chairman, State Bank of India. SBI leads the 13-bank consortium that has lent to Kingfisher in the recent debt restructuring.
Banks, including SBI, ICICI Bank, IDBI Bank and Punjab National Bank, have an exposure of Rs 7,700 crore to the airline. The airline has suffered a loss of Rs 1,027 crore in 2010-11 and has a mounting debt of Rs 7,057.08 crore.
14/11/11 Indian Express

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Categories: Kingfisher Nov 2011